(Bloomberg) — U.S. stock futures traded in a narrow range as the dollar weakened ahead of President Donald Trump’s inauguration. Bitcoin has recorded a record surge.
President Trump is expected to issue a slew of executive orders on his first day in office, including legislation on immigration, customs and energy, as part of a sweeping effort to quickly implement his policy agenda. While many investors hope these interventions will be good for business, they also come with unpredictability.
“What is 100% certain is that Mr. Trump wants to keep the mood in the U.S. stock market positive,” said SEB strategist Dana Maras. “We’re going to see strong growth and pro-business policies with an inflationary component, and we can expect a sudden turnaround with the motto that deals are meant to be broken.”
Trump has been moving the market since before he took office. His plan to mobilize emergency power to boost domestic energy production while transitioning away from renewable energy sources has caused stock prices to fall for Siemens Energy AG, Enel SpA and Vestas Wind Systems A/S. caused.
Bitcoin rose as much as 5.5% after the president-elect and first lady Melania Trump announced their own meme coin over the weekend. President Trump’s meeting with Chinese President Xi Jinping was described as “very good”, boosting Asian stocks on Monday.
Futures, the S&P 500, and the Nasdaq 100 were little changed on Monday, a holiday for Wall Street. The dollar index fell for the first time in three days, but remains close to the 13-month high reached earlier this month. The STOXX Europe 600 index fell 0.1%, weighed down by declines in utility stocks.
President Trump may issue additional fiscal stimulus, ranging from tax cuts to tariff increases, which could keep the dollar strong and U.S. Treasury yields rising. For example, Nomura Holdings, along with T. Rowe Price, has said the 10-year Treasury yield could rise to 6% this year, while a small number of bond traders have suggested that the Federal Reserve We believe that the next policy step for the Board of Governors is to raise interest rates. Contrary to the majority view that interest rates will be cut, they
“Further stimulus that causes a growth shock and an inflation shock could lead to a Fed rate hike cycle, but the market is not prepared for it,” Ian Steely, international CIO of fixed income at JPMorgan Asset Management, said in a note to clients. “It’s hardly in place,” he said.
Trump’s stance on issues such as technology competition with China and climate change is also likely to influence investment decisions in sectors ranging from semiconductors to electric vehicles and shipbuilding.
“The coming days are going to be very volatile as we have confirmed that a number of decrees will be signed within hours after the inauguration,” said Engerin Artaz, fund manager at La Financière de L’Echiquier. Deaf,” he said.
The increased appetite for risk assets in Asia comes after Trump and Xi discussed trade, TikTok and fentanyl, which could set the tone for relations in the early days of the new administration. TikTok is in an upbeat mood as it begins restarting its service in the U.S. on Sunday after President Trump announced a three-month suspension of enforcement of a law requiring the app’s Chinese owners to find a buyer. I was spurred on.
The World Economic Forum’s annual meeting begins late Monday. Larry Fink, Ray Dalio and Marc Benioff are among the group of billionaires scheduled to take part in the pilgrimage of the rich and powerful to Davos, Switzerland. Trump is scheduled to address the rally virtually three days after the inauguration.
Later in the week, focus will turn to the Bank of Japan’s policy decision scheduled for Friday, with about three-quarters of economists in a Bloomberg survey expecting the Bank to raise interest rates.
This week’s main events:
Annual World Economic Forum begins on Monday in Davos
Donald Trump will be sworn in as the 47th president of the United States on Monday
UK unemployment insurance claims, unemployment rate, Tuesday
Canadian Consumer Price Index, Tuesday
New Zealand CPI, Wednesday
Malaysian CPI, interest rate decision, Wednesday
South African retail sales, CPI, Wednesday
ECB President Christine Lagarde and other officials speak at Davos on Wednesday
South Korea GDP, Thursday
Eurozone consumer confidence, Thursday
Turkey interest rate decision Thursday
Norwegian interest rate decision Thursday
Canadian retail sales Thursday
President Trump joins World Economic Forum for online ‘dialogue’
Japanese CPI, interest rate decision, Friday
India, Eurozone, UK PMIs Friday
ECB President Christine Lagarde and BlackRock CEO Larry Fink speak at Davos on Friday
The main movements in the market are:
stock
S&P 500 futures were little changed as of 7:43 a.m. New York time.
Nasdaq 100 futures little changed
Dow Jones Industrial Average futures little changed
Stoxx European 600 fell 0.1%
MSCI World Index little changed
currency
The Bloomberg Dollar Spot Index fell 0.2%.
The euro rose 0.5% to $1.0323.
The British pound rose 0.2% to $1.2192.
The Japanese yen remained almost unchanged at 156.35 yen to the dollar.
cryptocurrency
Bitcoin rises 2.6% to $106,210.09
Ether rose 1.6% to $3,282.63
bond
The 10-year government bond yield was almost unchanged at 4.63%.
German 10-year bond yield remains unchanged at 2.54%
The UK 10-year bond yield rose 4 basis points to 4.70%.
merchandise
West Texas Intermediate crude rose 0.2% to $78.01 per barrel.
Spot gold rose 0.2% to $2,708.75 an ounce.
This article was produced in partnership with Bloomberg Automation.
–With assistance from Matthew Burgess, Julien Ponthus, Margaryta Kirakosian, and Catherine Bosley.
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